Figure 3-12

Multiple Choice

Figure 3-12. The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received:
The driver used was the number of machine hours.
Refer to Figure 3-12.What was the cost formula for equipment maintenance?

A) total maintenance cost = $25 ´ machine hours
B) total maintenance cost = $32,000
C) total maintenance cost = $32,000 + ($25 ´ machine hours)
D) none of these are correct